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Browsing Category
Political Economy
The Catch 22 of Eurozone Imbalances – Fighting the Debt Snowball
Edward does a nice job to sum up the flurry of the past week which saw the ongoing problems in Greece elevated to a full fledged systemic crisis in the Eurozone economy which, if it ultimately blows, will have ramifications far beyond the…
Rosenberg objects to the all bailouts all the time mentality we see with Greece
David Rosenberg is sick and tired of what I call the all bailouts all the time mentality. He writes in today's Breakfast with Dave piece: Ban the Bailout First we have governments bailing out banks (and auto companies and mortgage…
Business as usual on Wall Street and political posturing in Washington
In 2007, a credit crisis centred in the US subprime market began. It metastasised into a monstrosity of epic proportions that led to the worst and only synchronized global downturn since the Great Depression three-quarters of a century ago.…
Germany may fund Greece for three years; the question is why
I am at a conference all day and will probably do a spot on BNN late this afternoon, so blogging will be limited. But I wanted to alert you to my thinking on some of the latest developments on Greece. Apparently, Germany is now planning to…
Guest Post: Some Proposals to the Greek Government
The following is a guest post by Polyvios Petropoulos, a former university professor of economics and management in the US. Petropoulos contends that, since the IMF charges a maximum rate of 3.5% in other interventions, one would expect…
Merkel may force banks to take haircut on Greek debt
German Chancellor Angela Merkel is feeling pressure to force German banks to take a haircut on Greek debt by both her own party and opposition leaders (like Frank-Walter Steinmeier, the former Vice Chancellor and now head of the opposition…
Greek bond yields at 12-year high, contagion increasing
This past weekend, German and French government officials took a hard line on aid to Greece, sending 10-year Greek bond yields to 12-year highs above 9%. According to the Wall Street Journal,the spread in yields between 10-year Greek…
Twenty-first century competitive currency devaluations
After the $1 trillion EU/ECB/IMF bailout it became clear to me that this theme of competitive currency devaluations is likely to gather steam. The Euro is now dropping. I see a weak Euro as a big political problem both within Germany and…
Greece Raises the White Flag
Earlier this week Edward mused about whether we were about to see movements in the Greek trenches as yields on 10 year bonds rose to a record 7.76 per cent at one point and closed up 26 basis points on the day. Today, as yields on 2 year…
The Greek Tragedy Continues
The future of the Eurozone is decidedly hanging in the balance at the moment. As I said earlier in the week, the problem isn’t a simple question economics anymore: everything now is all about credibility, about who does what, and when, and…